Answer:
a. $2,465.82
b. $3,539.68
c. Yes, we should
Explanation:
Annual cost to maintain old forklift is $5,000
Equivalent Annual Cost (EAC) of new forklift = (Asset price x discount rate)/(1-(1+discount rate)-n), in which n is the number of year for usage of this forklift?
If discount rate is 4% per year, the EAC of new forklift is $2,465.82
= ($20,000x4%)/(1-(1+4%)-10)
If discount rate is 12% per year, the EAC of new forklift is $3,539.68
= ($20,000x12%)/(1-(1+12%)-10)
We should replace because with such above discount rate, the old forklift is more costly than the new one
Answer:
Correct option is (c)
Explanation:
When the company repurchases common stock, it has to pay cash to the shareholders to gain rights on the stocks. So, cash decreases in this case.
Payment of dividend also decreases cash from balance sheet.
When company needs cash for investment or growth purpose, it issues common stock to raise funds, thereby increasing cash in the company's balance sheet.
When company gives more time to its debtors, receipt of cash is delayed thereby not increasing cash in balance sheet.
Purchase of new equipment will reduce cash balance.
So issue of new shares increase cash balance in balance sheet.
Answer:
Answer is Move to a new record.
Explanation:
According to the Microsoft support website, "Move the cursor to another record to commit your changes to the database or press Shift+Enter.
I hope it's helpful!!
Answer:
D. Project A has a standard deviation of expected returns of 20%, while Project B's standard deviation is only 10%. A's returns are negatively correlated with both the firm's other assets and the returns on most stocks in the economy, while B's returns are positively correlated. Therefore, Project A is less risky to a firm and should be evaluated with a lower cost of capital.
Answer:
Loan Account
DR loan Note Account with $150,000
DR Loan Interest Expenses with $3,000
CR Cash/Bank Account with $153,000
Explanation:
the interest payable on the loan as at Dec 31 = $150,000 *6% *4/12 = $3,000
